A Case Study Of Abbott Cross-Border Fraud Based On Triangulation Model

In recent years,with the in-depth advancement of the “Belt and Road” initiative,more and more listed companies in China have responded to the call to carry out cross-border investment projects and participate in the “going global” process.Since 2013,the net foreign investment of Chinese enterprises has maintained a double-digit growth rate every year,and more companies are willing to expand their international influence on the international stage.However,cross-border business is gradually becoming the target of financial fraud of listed companies due to restrictions such as difficult supervision,complicated related party transactions,and weak intermediary business capabilities of intermediaries.In 2017 alone,there were two cross-border fraud cases in China.Under the new investment environment of the “Belt and Road”,listed companies' financial fraud has shown a tendency to expand overseas.Therefore,in the new investment environment of the “Belt and Road”,it is of great significance to analyze the causes of cross-border frauds of listed companies,thereby enhancing the recognition ability of cross-border frauds of accounting firms.Research question: This article takes the first major cross-border financial fraud case of listed companies in China investigated and handled by the China Securities Regulatory Commission as an example.What are the means of cross-border fraud? What are the causes of cross-border fraud? And how should an accounting firm improve its ability to recognize cross-border fraud?The study found that the accounting firm can identify audited units' fraudulent pressure from three aspects of the reasonableness of performance commitment,the listed company's industry status and whether there is financing pressure;from the company's internal governance situation,overseas project situation and cross-border related party transaction identification Opportunities for companies to cheat;identify excuses for fraud by audited units in terms of management values and mentality.At the same time,certified public accountants should understand local policies,regulations and other relevant knowledge in advance to improve their cross-border business capabilities;accounting firms can enhance the quality and efficiency of audits of overseas projects by strengthening their contact with overseas supervisory departments.In summary,as the “Belt and Road” initiative advances,the research on the case of cross-border fraud of Yabat will help the CPA to detect the possibility of fraud from the various warning signals of listed companies and improve the audit quality;As more and more companies in China develop investment business abroad,the research on cross-border fraud of listed companies will have a positive significance for the healthy development of the capital market.